Recent News
On July 22, 2025, the Arizona State Retirement System reported a reduced stake in Valaris, trimming holdings by 3.4% and leaving 18,360 shares after selling 642 shares during the period.
Technical Analysis
Directional indicators show low trend strength: ADX at 15.41 indicates no established trend, while the DI+ at 22.82 registered a peak-and-reversal, which signals bearish directional pressure; the DI- at 19.07 also registered a peak-and-reversal, which signals bullish directional pressure. The combination produces conflicting directional signals without a strong trend.
MACD registers at 0.44 with a peak-and-reversal trend, and the MACD signal line sits at 0.53; MACD below its signal line denotes bearish momentum and a recent loss of upside momentum.
MRO stands at 5.07 and shows a dip-and-reversal; a positive MRO indicates the market price sits above the target level, implying pressure toward a decrease from current levels if momentum reasserts.
RSI at 55.12 with a peak-and-reversal indicates the short-term momentum has peaked and flipped toward the downside. Short-term moving averages reinforce that tone: the 12-day EMA at $51.06 shows a peak-and-reversal, the 20-day average at $50.72 sits slightly above the close at $50.58, while the 200-day average at $43.39 places the price well above long-term trend. Together these readings imply near-term downward bias inside a broader, higher trading range.
Bollinger bands show a tight short-term volatility band (upper ~ $51.83, lower ~ $49.61) and recent price action near the upper band, indicating limited immediate room for upside extension before reversion to the mean.
Fundamental Analysis
Total revenue for the period stands at $615,200,000 with EBITDA at $206,000,000 and EBIT at $170,500,000. Gross margin reads 29.91% and operating margin 26.85%, both reflecting operating leverage in existing contracts and cost control compared with recent periods.
YoY and QoQ dynamics: YoY EBIT margin improved by 17.92%, while QoQ EBIT margin contracted by 3.68% (EBIT margin now 27.72%). YoY operating margin rose by 14.25% while operating margin QoQ declined by 6.68%. Revenue growth shows a slight decline: revenue growth stands at -0.89% and reported revenue growth YoY equals -105.47% (use provided figures as reported).
Profitability and returns: net income reached $115,100,000 and return on equity equaled 4.94% while return on assets measured 2.59%. Cash generation remains meaningful: operating cash flow totaled $120,000,000, free cash flow $52,800,000, and cash on hand $503,400,000, producing a free cash flow yield of 1.62% and a cash conversion ratio above 1 at 1.12.
Leverage and coverage: total debt reached $1,169,800,000 with net debt at $580,900,000 and debt/EBITDA roughly 5.68x. Interest coverage stands at 6.88x, indicating adequate ability to service interest at current operating levels.
Comparisons to industry peer ranges where provided: EBIT margin at 27.72% sits above the industry peer mean of -14.42% and above the industry peer median of -2.45% within the supplied industry peer range; asset turnover at 0.1384 sits slightly above the industry peer mean of 0.1179; return on equity at 4.94% exceeds the industry peer mean of -2.76% and the industry peer median of -1.47%. These comparisons indicate Valaris delivers stronger operating margins and returns than the supplied peer-range benchmarks.
Earnings metrics and guidance context: reported EPS came in at $1.61 versus an estimate of $1.21, producing an EPS surprise of 33.06%. Forward EPS stands at $1.3175 with a forward P/E of 30.46x. Current trailing P/E reads 27.39x.
Valuation posture: WMDST values the stock as over-valued. Enterprise multiple measures near 19.07x while market capitalization sits at $3,263,020,029 and enterprise value at $3,929,420,029; these multiples, combined with a modest free cash flow yield of 1.62%, support the WMDST over-valued assessment given current fundamentals and cash-return expectations.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-30 |
| NEXT REPORT DATE: | 2025-10-29 |
| CASH FLOW | Begin Period Cash Flow | $ 453.7 M |
| Operating Cash Flow | $ 120.0 M | |
| Capital Expenditures | $ -67.20 M | |
| Change In Working Capital | $ -21.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 62.5 M | |
| End Period Cash Flow | $ 516.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 615.2 M | |
| Forward Revenue | $ 125.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 431.2 M | |
| Depreciation | $ 35.5 M | |
| Depreciation and Amortization | $ 35.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 450.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 184.0 M | |
| EBITDA | $ 206.0 M | |
| EBIT | $ 170.5 M | |
| Operating Income | $ 165.2 M | |
| Interest Income | $ 15.1 M | |
| Interest Expense | $ 24.8 M | |
| Net Interest Income | $ -9.70 M | |
| Income Before Tax | $ 145.7 M | |
| Tax Provision | $ 31.5 M | |
| Tax Rate | 15.2 % | |
| Net Income | $ 115.1 M | |
| Net Income From Continuing Operations | $ 114.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.21 | |
| EPS Actual | $ 1.61 | |
| EPS Difference | $ 0.40 | |
| EPS Surprise | 33.058 % | |
| Forward EPS | $ 1.32 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.5 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 2.3 B | |
| Total Current Assets | $ 1.2 B | |
| Cash and Short-Term Investments | $ 503.4 M | |
| Cash | $ 503.4 M | |
| Net Receivables | $ 489.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 155.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 332.3 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 678.7 M | |
| Net Debt | $ 580.9 M | |
| Total Debt | $ 1.2 B | |
| Total Liabilities | $ 2.2 B | |
| EQUITY | ||
| Total Equity | $ 2.3 B | |
| Retained Earnings | $ 1.5 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 32.77 | |
| Shares Outstanding | 71.069 M | |
| Revenue Per-Share | $ 8.65 | |
| VALUATION | Market Capitalization | $ 3.3 B |
| Enterprise Value | $ 3.9 B | |
| Enterprise Multiple | 19.075 | |
| Enterprise Multiple QoQ | 19.361 % | |
| Enterprise Multiple YoY | -34.333 % | |
| Enterprise Multiple IPRWA | high: 49.772 median: 20.816 mean: 19.158 VAL: 19.075 low: -10.907 |
|
| EV/R | 6.387 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.933 | |
| Asset To Liability | 2.075 | |
| Debt To Capital | 0.334 | |
| Debt To Assets | 0.26 | |
| Debt To Assets QoQ | -1.992 % | |
| Debt To Assets YoY | 3812.199 % | |
| Debt To Assets IPRWA | high: 0.612 mean: 0.283 VAL: 0.26 median: 0.258 low: 0.152 |
|
| Debt To Equity | 0.502 | |
| Debt To Equity QoQ | -4.689 % | |
| Debt To Equity YoY | 3630.461 % | |
| Debt To Equity IPRWA | high: 2.026 mean: 0.559 VAL: 0.502 median: 0.427 low: 0.216 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.401 | |
| Price To Book QoQ | 16.129 % | |
| Price To Book YoY | -43.51 % | |
| Price To Book IPRWA | VAL: 1.401 high: 0.933 mean: 0.664 median: 0.639 low: 0.28 |
|
| Price To Earnings (P/E) | 27.387 | |
| Price To Earnings QoQ | 41.184 % | |
| Price To Earnings YoY | -25.423 % | |
| Price To Earnings IPRWA | high: 206.048 median: 140.921 mean: 112.773 VAL: 27.387 low: -47.965 |
|
| PE/G Ratio | -0.068 | |
| Price To Sales (P/S) | 5.304 | |
| Price To Sales QoQ | 23.681 % | |
| Price To Sales YoY | -40.044 % | |
| Price To Sales IPRWA | VAL: 5.304 high: 5.086 mean: 3.437 median: 2.649 low: 1.698 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 30.464 | |
| Forward PE/G | -0.075 | |
| Forward P/S | 26.069 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 5.118 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.138 | |
| Asset Turnover Ratio QoQ | -1.816 % | |
| Asset Turnover Ratio YoY | -0.525 % | |
| Asset Turnover Ratio IPRWA | high: 0.215 VAL: 0.138 mean: 0.118 median: 0.109 low: 0.054 |
|
| Receivables Turnover | 1.239 | |
| Receivables Turnover Ratio QoQ | 0.431 % | |
| Receivables Turnover Ratio YoY | -0.799 % | |
| Receivables Turnover Ratio IPRWA | high: 2.251 median: 1.552 mean: 1.526 VAL: 1.239 low: 1.118 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 73.644 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.121 | |
| CapEx To Revenue | -0.109 | |
| CapEx To Depreciation | -1.893 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.4 B | |
| Net Invested Capital | $ 3.4 B | |
| Invested Capital | $ 3.4 B | |
| Net Tangible Assets | $ 2.3 B | |
| Net Working Capital | $ 548.7 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.742 | |
| Current Ratio | 1.808 | |
| Current Ratio QoQ | 8.495 % | |
| Current Ratio YoY | 4.497 % | |
| Current Ratio IPRWA | high: 1.866 VAL: 1.808 median: 1.8 mean: 1.676 low: 1.264 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.679 | |
| Cost Of Debt | 1.667 % | |
| Interest Coverage Ratio | 6.875 | |
| Interest Coverage Ratio QoQ | -6.46 % | |
| Interest Coverage Ratio YoY | 8.351 % | |
| Interest Coverage Ratio IPRWA | VAL: 6.875 high: 3.499 mean: -1.26 median: -1.692 low: -8.759 |
|
| Operating Cash Flow Ratio | 0.248 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 67.363 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.656 % | |
| Revenue Growth | -0.886 % | |
| Revenue Growth QoQ | -114.265 % | |
| Revenue Growth YoY | -105.466 % | |
| Revenue Growth IPRWA | high: 23.592 % mean: 2.982 % median: 2.449 % VAL: -0.886 % low: -4.781 % |
|
| Earnings Growth | -403.774 % | |
| Earnings Growth QoQ | -15279.474 % | |
| Earnings Growth YoY | -184.12 % | |
| Earnings Growth IPRWA | high: -50.0 % mean: -98.974 % median: -113.043 % low: -300.0 % VAL: -403.774 % |
|
| MARGINS | ||
| Gross Margin | 29.909 % | |
| Gross Margin QoQ | 7.559 % | |
| Gross Margin YoY | 28.774 % | |
| Gross Margin IPRWA | high: 86.291 % VAL: 29.909 % mean: 29.778 % median: 20.124 % low: 2.304 % |
|
| EBIT Margin | 27.715 % | |
| EBIT Margin QoQ | -3.68 % | |
| EBIT Margin YoY | 17.916 % | |
| EBIT Margin IPRWA | high: 35.338 % VAL: 27.715 % median: -2.449 % mean: -14.421 % low: -99.291 % |
|
| Return On Sales (ROS) | 26.853 % | |
| Return On Sales QoQ | -6.676 % | |
| Return On Sales YoY | 14.249 % | |
| Return On Sales IPRWA | high: 36.048 % VAL: 26.853 % median: 16.002 % mean: 10.43 % low: -2.378 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 52.8 M | |
| Free Cash Flow Yield | 1.618 % | |
| Free Cash Flow Yield QoQ | -22.695 % | |
| Free Cash Flow Yield YoY | -188.464 % | |
| Free Cash Flow Yield IPRWA | high: 3.973 % median: 2.312 % VAL: 1.618 % mean: 1.54 % low: -1.313 % |
|
| Free Cash Growth | -5.206 % | |
| Free Cash Growth QoQ | -101.569 % | |
| Free Cash Growth YoY | -75.257 % | |
| Free Cash Growth IPRWA | VAL: -5.206 % high: -36.66 % mean: -77.932 % median: -83.333 % low: -123.951 % |
|
| Free Cash To Net Income | 0.459 | |
| Cash Flow Margin | 27.341 % | |
| Cash Flow To Earnings | 1.461 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 2.589 % | |
| Return On Assets QoQ | -400.697 % | |
| Return On Assets YoY | -24.121 % | |
| Return On Assets IPRWA | VAL: 2.589 % high: 1.039 % median: -0.867 % mean: -1.375 % low: -5.094 % |
|
| Return On Capital Employed (ROCE) | 4.458 % | |
| Return On Equity (ROE) | 0.049 | |
| Return On Equity QoQ | -387.769 % | |
| Return On Equity YoY | -28.1 % | |
| Return On Equity IPRWA | VAL: 0.049 high: 0.035 median: -0.015 mean: -0.028 low: -0.1 |
|
| DuPont ROE | 5.074 % | |
| Return On Invested Capital (ROIC) | 3.914 % | |
| Return On Invested Capital QoQ | 20.172 % | |
| Return On Invested Capital YoY | -112.749 % | |
| Return On Invested Capital IPRWA | VAL: 3.914 % high: 2.716 % median: -0.517 % mean: -0.69 % low: -5.294 % |
|